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mlORT~l <br /> <br />MEMORANDUM <br /> <br />To' <br /> <br />From: <br /> <br />Date: <br /> <br />Re: <br /> <br />Blair Bennett <br />Bill Kouri <br /> <br />Frank W. Clifton, Jr. <br /> <br />January 11, 1999 <br /> <br />Admini~hation of Industrial Development Incentive Grants <br /> <br />Per our conversations as further clarification for administration of the County's Industrial Development <br />Incentive Grant Program, the listed notations arc provided. <br /> <br />(A) <br /> <br />Within the incentivo guidelines the terminology "under no circumstances would any new or <br />expanding indnsuy receive an industrial development incentive gxant that lowered the net tax <br />payments..." does not factor into consideration annual adjustments to personal property values <br />~ociated with normal business depreciation schedules authorized by state statute or the periodic <br />revaluation of real property (as currently underway) that would most likely result in reductions to <br />the property tax rate and ultimately reduce the amount of taxes paid on personal property. <br /> <br />To clarify these isles: <br /> <br />(t) <br /> <br />It is understood that the "net" taxes paid by a business concern will be impacted by the annual <br />application of business depreciation schedules and variations on the property tax rate. <br />Adjustments to "net" taxes paid should allow for reduction in values associated with application of <br />authorized depreciation. <br /> <br />(2) <br /> <br />Adjustment to real property values through revaluation will result in a tax rate reduction which <br />will reduce the "net" taxes paid on personal property assets because personal property values are <br />not subject to revaluation except through the business audit process which recovers umq>orted <br /> <br />Any change in the "neC' taxes paid should not penalize a grant recipient on personal property <br />calculations due to real property revalnafion. <br /> <br />In the spirit of the Industrial Development Incentive Grant Program, it is possible to misinterpret <br />the grant threshold levels of $5,000,000, $20,000,000 and $100,000,000 to apply throughout the <br />grant period. (i.e.: $5,000,000 of investment in personal property not accounting for routine <br />depreciation applications would fall below the qualification level in year two when depreciation is <br />applied.) <br /> <br /> Office of the County Manager <br />P. O, Box 707., Concord, NC 28026-0707 * (704) 788-8100 · Charlotte 375-0829 <br /> <br /> <br />